6 Best Retirement Planning Tips for 65 years old
- Most retirees’ expenses are considerably greater than their Social Security benefits.
- In fact, Social Security benefits provided an average of only 36 percent of the total income for those ages 65 and over, according to a recent study by the Social Security Administration.
- This means retirees often need to plan for other sources for retirement income.
- Many people discover they spend their money on different things after they retire, but the amount needed doesn’t change a great deal – especially in the early years of retirement.
- You may not be spending as much money for clothes and commuting, but you may spend more for travel and other leisure activities or higher medical expenses.
- Many financial professionals assume you will need 70 percent to 80 percent of your pre-retirement income as a starting point.
Will Medicare be enough when I retire?
Medicare helps older adults pay for some of their medical bills, but it doesn’t cover everything.
It also doesn’t pay for most long-term care services – and neither do health insurance plans.
Long-term care insurance can protect you from the significant costs associated with nursing home or home health-care convalescence.
Retirement Planning Tips
Make a list of all the things you would like to do once you have more time:
- What new contributions can you make?
- What passions can you develop?
- Where would you like to volunteer?
- What new things would you like to learn about?
- What new places would you like to see?
- Where would you like to live?
- What experiences would you like to have?
Now is the time to do these things, because if not now, then when? You’re not going to get many more chances.
Go easy on yourself and work with the process. Even when you imagine new roles in life that sound satisfying, it may be daunting to figure out how to get started and make the transition. Don’t worry.
Getting Ready for Retirement at 65
It doesn’t matter if you’ve been saving for retirement for an entire working career or you’re just getting started.
Age 65 is a great time to assess, or reassess, retirement income needs and see if they are aligned with the sources of income you’ll have available in retirement.
Playing Catch Up
Finally, if you’re in the situation where it’s necessary to play a lot of catch up with your retirement savings, keep in mind the IRS has some catch-up limits that apply to individuals that are age 50 and older:
- 401(k) Plans: In 2018 and 2019 you can contribute up to $24,500 and $25,000 respectively to a 401(k) plan, which includes a $6,000 catch up limit. For more information on future limits, take a look at our article on 401(k) contribution limits.
- IRA (including Traditional IRAs and Roth IRAs): In 2018, you can contribute up to $6,500 and $7,000 in 2019, which includes a catch up limit of $1,000, to a Traditional or Roth IRA.
Finally, be sure to stay informed of the retirement planning options your company offers.
Retirement is a problem that should be faced head on,but figured backward.
People should figure out what they’ll need to live on and then work backward from there to save it. A rough rule of thumb is you need about 75 percent of the income you have while working.
People typically can live on the reduced income because they are no longer paying Social Security retirement payroll tax, they’re not saving for retirement and the mortgage is or will soon be gone — hopefully.
It It is strongly encouraged people to pay those things off before they retire. Individuals will need a little more or a little less, but it’s a rough number everyone should know.
The next step is knowing how to maximize monthly income. The other number everybody should know is how much more your monthly Social Security benefits will be if you retire at 70, as opposed to 62.
Best Retirement Planning in Florida & New York: How can we help you?
We help you build, manage, and preserve your wealth.
Our professionals are experienced in the areas of estate and trust, investment advisory, insurance, and retirement planning.
In order to maximize our effectiveness in each of these areas, we coordinate our efforts with your bankers, trust officers, attorneys, and other advisors.
We work with you to identify your goals, determine where you are now and how to get you to where you want to be.
Together we implement a plan to achieve your goals.
Learn more about our services and process or call us
at 813-964-7100 or 716-565-1300.
Email us at [email protected]